1. ) is defined as the equilibriumprice for futures contracts. Also called the theoretical futuresprice, which equals the spotprice continuously compounded at the cost of carryrate for some time interval. In terms of corporate goverance, Fair-Price provisions limit the range of prices a bidder can pay in two-tier offers. They normally require a bidder to pay to all shareholders the highest price paid to any during a specified period of time prior the commencement of a tenderoffer. However, this does not apply if the deal is approved by the board of directors or a supermajority of the target's shareholders. . The goal is to prevent pressure on the target's shareholders to tender their shares in the front end of a two-tiered tenderoffer, which may result in making such and acquisition more expensive